A Country That Has a Capital Account Deficit

question 10

Multiple Choice

A country that has a capital account deficit:

• A)Is a net seller of assets
• B)Is importing less than it exports
• C)Also has a current account deficit
• D)Is a net buyer of assets

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Definitions:

Useful Life

The estimated period over which an asset is expected to be usable for its intended purpose, affecting its depreciation.

Machine

Equipment or apparatus designed to perform a specific task in the manufacturing process.

Present Value

The immediate worth of anticipated money or streams of cash flows, computed with an agreed-upon rate of return.

Cash Inflows

Money received by a business from its operational, financing, and investing activities.